Benchmark indices erased all intra-day gains to finish in the adverse territory on Tuesday. S&ampP BSE Sensex ended at 48,253, down 465 points although the Nifty 50 index closed just shy of 14,500. Index heavyweight Reliance Industries was the most significant Sensex drag, falling 2.11% on Tuesday. It was followed by Sun Pharma, Dr Reddy’s, and HDFC Twins. ONGC, Bajaj Finance, and TCS have been the major gainers. Broader markets followed the benchmark indices. Among sectoral indices on NSE, only the Nifty PSU Bank index closed with gains.

Deepak Jasani, Head of Retail Research, HDFC Securities
“Indian benchmark indices fell for the second times in three days on May 04, following concerns over FPI selling in the recent past and further action expected to combat the Covid situation. Asian stocks were largely lukewarm on Tuesday as a continuous surge in COVID-19 cases kept investors on the sidelines amid holiday-thinned trade. .Nifty has come under pressure as India’s official tally of coronavirus infections surged past 20 million, IPL cricket tournament has been suspended with immediate effect and Corporate management commentary remained cautious on Q1 performance due to lockdowns. Fears of stricter lockdowns also brought caution amongst traders. 14416-14634 is the band for the Nifty over the near term.”

Vinod Nair, Head of Research at Geojit Financial Services –
“Indian bourses opened with a strong grip but failed to hold onto its gains owing to weak international markets. As technology heavyweights continued to weigh on Wall Street equities, US futures slipped while European stocks struggled for direction. On the Indian front, gains in public sector banks were offset by weakness in pharma and auto stocks.”

Mohit Nigam, Head, PMS, Hem Securities –
“Markets erased all the opening gains after a second session selloff led by RIL , HDFC Twins and Large cap ITs. A sharp movement was seen in some PSU stocks with PNB gaining 8.5%. A closing below 14500 is slightly negative for the markets and markets can test 14200 levels again. Strong Positive results on the corporate front are protecting the downside currently.”

S Ranganathan, Head of Research at LKP Securities –
“Indices lost a percentage on Tuesday as the street punished earnings disappointment in several high-quality Midcaps. Afternoon Trade witnessed profit-taking in Metals & Pharma names as the street exhibited nervousness on regional Lockdowns which accentuated the weakness. In the broader market Paper stocks were sought after today on hardening pulp prices while Coffee producers saw investor appetite.”

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments –
“The markets have not broken the 14400 level on a closing basis which means the support still holds. If we crack this level, we could see levels closer to 14000-14100. On the upside, there is stiff resistance at 14700 and until we do not get past that, we will not enter a bullish trend. It is a tight range and traders need to be cautious in their approach.”


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